Can additional holidays be exchanged for overtime work?

The Department of Labor (DOL) has noted that there is no problem with an employer providing extra holiday time to employees; for example, giving Christmas Eve and New Years’ Eve as holidays in addition to Christmas Day and/or New Year’s Day-either with or without pay.

However, the DOL cautions that a Fair Labor Standards Act (FLSA) violation could occur if employees are asked to work extra hours without pay in another workweek to make up for the time lost over the holiday. That type of arrangement could result in employees not being paid time and one-half for hours worked over 40 in one workweek.

To avoid inadvertently violating the FLSA over the holidays, do not give employees time off and then expect them to make it up at a later date.